Development After Apple's co-founder
Steve Jobs left Apple in 1985, product development was handed to
Jean-Louis Gassée, formerly the manager of Apple France. Gassée consistently pushed the Apple product line in two directions, towards more "openness" in terms of expandability and interoperability, and towards higher price. Gassée long argued that Apple should not aim for the low end of the computer market, where profits were thin, but instead concentrate on the high end and higher profit margins. He illustrated the concept using a graph showing the
price-performance ratio of computers with low-power, low-cost machines in the lower left and high-power high-cost machines in the upper right. The "high-right" goal became a mantra among the upper management, who said "fifty-five or die", referring to Gassée's goal of a 55 percent profit margin. The high-right policy led to a series of machines with ever-increasing prices. The original Macintosh plans called for a system around $1,000, but by the time it had morphed from
Jef Raskin's original vision of an easy-to-use machine for composing text documents to Jobs's concept incorporating ideas gleaned during a trip to
Xerox PARC, the Mac's list price had ballooned to $2,495. With the "low-left" of the market it had abandoned years earlier booming with
Turbo XTs, and being ignored on the high end for
UNIX workstations from the likes of
Sun Microsystems and
SGI, Apple's fortunes of the 1980s quickly reversed. The Christmas season of 1989 drove this point home, with the first decrease in sales in years, and an accompanying 20 percent drop in Apple's stock price for the quarter. In January 1990, Gassée resigned and his authority over product development was divided among several successors. Apple did not renew the contract when it ended.
MacWEEK speculated the Macintosh Classic would use the same
Motorola 68000 microprocessor and display as its predecessors and that the Classic would be priced from . and saying, "To reach new customers, we didn't just lower the prices of our existing products. We redesigned these computers from the ground up with the features customers have told us they value most." Apple's new pricing strategy caused concern among investors, who thought it would reduce
profit margins. Brodie Keast, an Apple product marketing manager, said, "We are prepared to do whatever it takes to reach more people with Macintosh[...] The plan is to get as aggressive on price as we need to be." more than in the US but matching the price of the
Toshiba Dynabook laptop computer. Apple had difficulty meeting the high demand. Apple doubled its manufacturing space in 1990 by expanding its
Singapore and
Cork, Ireland factories, where the Classic was assembled. and Scholastic planned to release 16 new Macintosh products in 1991. ==Features==